First National Corp., parent company of First...

First National Corp., parent company of First National Bank, reported that second-quarter net income rose 27%, to $513,000, from $404,000 reported during the like quarter a year before. Total assets rose 26%, to $452 million, up from $360 million the previous year.

Deposits increased 25%, to $404 million, up from $325 million, and loans rose 24%, from $254 million to $317 million.

Net income for the six-month period ended June 30 fell 33.3%, to $760,000, down from $1.1 million during the first half of 1987. First National linked the drop to a previously announced decision to concentrate on loan servicing rather than loan originations.

Mortgage loans serviced totaled $136 million on June 30, up from $40 million a year earlier. The new emphasis on loan servicing will “positively influence” First National’s profits, according to a spokesman.

First National earlier this month agreed to acquire Temecula-based Overland Bank for a combination of stock and cash valued at $5.4 million. The acquisition will increase First National Corp.’s total assets to more than $500 million.